Minneapolis approves plan to redevelop area where Kmart store blocked Nicollet Ave. for decades

A yellow excavator moves metal scraps
An excavator works at the site of the former Kmart on Lake Street in Minneapolis in November.
Ben Hovland | MPR News 2023

The Minneapolis City Council approved a plan Thursday designed to correct what many longtime city residents have called one of the worst development decisions in the city’s history.

Under the new plan, the former Kmart department store and its parking lot which has blocked Nicollet Avenue near Lake Street since the late 1970s, will include mixed-use buildings, park land and new bike and pedestrian infrastructure.

“This project has been many years in the making and a long time coming,” said Aisha Chughtai, the council member who represents one of the four wards which border the 10-acre project area.  

She added that the planning process has also included significant public input. Chughtai said the project team has held more than 60 public events, which included input from more than 18,000 people. 

“I’m excited to extend Eat Street into the Eighth Ward,” said council member Andrea Jenkins referring to the blocks of restaurants along Nicollet to the north of the Kmart site.

Jenkins also pointed out that a section of her ward just south of the site, the intersection of 38th St. and Nicollet, has several successful restaurants. 

The Kmart building was demolished last year. Construction on the new development is set to begin in 2025.

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